Canadian midstream company Enbridge has announced a final investment decision (FID) on two gas transmission projects to capitalise on increasing natural gas demand.
The company has entered into commercial agreements for the Algonquin Reliable Affordable Resilient Enhancement (AGT Enhancement) project.
Additionally, Enbridge, via its Matterhorn joint venture (JV), reached an FID on the Eiger Express Pipeline project.
Enbridge Gas Transmission executive vice-president and president Cynthia Hansen said: "We continue to deliver on the $23bn of Gas Transmission opportunities we laid out at our Investor Day in March.
“Today's project announcements highlight the benefits of Enbridge's scale and demonstrate our ability to support growing natural gas demand in the US north-east, and LNG [liquefied natural gas] exports from the US Gulf Coast.
"These investments add visibility to, and extend, our growth outlook through the end of the decade."
The AGT Enhancement project is expected to provide an incremental 75 million cubic feet per day (mcf/d) of natural gas to local distribution company customers in the US north-east.
It is set to enhance Algonquin gas transmission pipeline deliveries.
This project, which is anticipated to cost $300m, involves system upgrades within, or adjacent to, existing rights-of-way and is designed to enhance affordability and lessen winter price volatility for customers.
With long-term contracts in place, the project is set to cater to investment-grade counterparties in the US north-east.
Enbridge aims to complete the AGT Enhancement by 2029, pending necessary government and regulatory approvals.
In a parallel development, the Eiger Express Pipeline is engineered to transport up to 2.5 billion cubic feet per day (bcf/d) of natural gas from the Permian Basin to the Katy area.
The pipeline, which stretches roughly 450 miles, is scheduled to be completed in 2028 and will support the growing US Gulf Coast LNG market.
Enbridge plans to hold a significant equity interest in 10bcf/d of long-haul Permian Basin egress pipeline capacity, which will be connected to key storage and LNG export facilities along the US Gulf Coast.
This project complements the assets of the Whistler Parent JV and is supported by long-duration agreements with counterparties of mainly investment-grade standing.
In March 2025, Enbridge unveiled a C$2bn ($1.3bn) investment for its mainline network upgrade through 2028.
